NewsWare‘s Trade Talk

NewsWare’s Trade Talk: Wednesday, May 11

S&P Futures were showing strong gains this morning but turned lower after the release of this morning's inflation report (CPI).  Data was expected to show that the consumer-price index rose 8.1% in April but came in at 8.3%. That is up from the same month a year ago, but decelerating from an 8.5% annual rate in March. Virus cases in China are significantly lower leading to speculation that the lockdown restrictions may soon be lifted. The yield of the 10-year Treasury bond retreated 5 bps, having fallen below 3%.

NOTE: CPI report was released following the recording of the episode. 

NewsWare’s Trade Talk: Tuesday, May 10

S&P Futures are traing higher this morning. Fears of a recession appear to be overdone. Multiple Federal Reserve members are scheduled to speak today and dovish comments are expected. Treasury Janet Yellen testifies to the SenatevCommittee on Financial Stability Oversight Council today. Markets are anticipating a positive CPI reading tomorrow, while an increase is expected, it will likely be significantly lower as compared to the March figure.

NewsWare’s Trade Talk: Monday, May 9

S&P Futures are down almost 2% this morning as rising interest rates remain the focus of concern. The Yield on the 10yr treasury not has increased to 3.195%. Oil prices are lower by more than 2% today and European exchanges are weak. Also, China's trade with the rest of the world withered in April as Covid-19 lockdowns shut factories and crippled supply chains, adding to signs of a broad slowdown in the world's second-largest economy.

NewsWare’s Trade Talk: Friday, May 6

Get the facts, themes and trading ideas for the day ahead on the latest episode. 

NewsWare’s Trade Talk: Thursday, May 5

S&P Futures are giving back some of yesterday's gains. Technology stocks will likely give back some of yesterday's gains after the opening bell, as traders assess the implications of the Fed's most move. The Federal Reserve hiked its benchmark interest rate by 50 basis points in a widely-expected move yesterday. Chairman Powell's comments that the Fed is not actively considering raising rates by 75 basis points send shares soaring. BofA said in a note, believes the Fed has pivoted to an appropriately hawkish stance and is likely done surprising markets for a while. We recommend focusing more on the data flow going forward, especially around labor and inflation. The economics calendar turns to weekly jobless claims ahead of Friday's nonfarm payrolls report. A wave of corporate earnings is due out after the bell today from SQ, ILMN, MCK, MNST, NET, DASH, ZG, DBX, BCC, and others.

NewsWare’s Trade Talk: Wednesday, May 4

S&P Futures are positive in the premarket. Volatility is likely later this afternoon as the Federal Reserve is expected to deliver the first 50 basis-point interest rate hike since 2000. Key market moving comments are likely to be made by Fed Chief Jerome Powell at his press conference which is scheduled to start at 2:30 pm ET. This morning there are a host of economic reports due out that the will be paying attention to. After the bell today we have earnings from FSLY, SAVE, JAZZ, ETSY, QRVO, GDDY, TWLO, ALB, EBAY, UBER and more.

NewsWare’s Trade Talk: Tuesday, May 3

S&P Futures are higher after pointing lower earlier this morning. The FOMC meeting starts today with an announcement tomorrow afternoon. The market is anticipating a 50 basis point rate increase and guidance on the Fed's plans for balance sheet reduction. Markets are likely to remain weak as we head into tomorrow's announcement. Treasury 10-year yields are now hovering around 3%, levels that we haven't seen since 2018. After the bell today, we have earnings announcements from AMD, ABNB, SBUX, AIG, PRU, MTCH, PAYC, LYFT, CRUS, and others.

NewsWare’s Trade Talk: Monday, May 2

S&P Futures turned lower after showing gains this morning. Friday's sell-off closed out the month of March with an 8.8% decline for April. The yield on the benchmark 10-year Treasury note edged up to 2.942% from 2.885% on Friday. The key economic event this week will be the announcement from the FOMC on monetary policy on Wednesday afternoon. Expectations are for a 50 basis point rate hike along with comments on reducing the Fed's balance sheet. This afternoon watch for earnings announcements from RMBS, CHGG, CC, CAR, CLX, MGM, EXPE, NXPI & LOGI.

NewsWare’s Trade Talk: Friday, April 29

S&P Futures are moving lower this morning. The move lower is being led by declines in the technology sector after Amazon.com posted its first quarterly loss in seven years. This morning, one hour before the market opens, we have the PCI report being released. The Personal Income and Outlays report is widely followed by the Fed as an inflation measure and next week we have an FOMC meeting where they will be discussing a rate increase and balance sheet reduction. Oil is higher as Germany is now on board with banning Russian oil in the EU, all EU countries need to approve this measure for it to be ratified. Stocks in Asia had a strong day as China appears close to releasing a stimulus program.

NewsWare’s Trade Talk: Thursday, April 28

S&P Futures are displaying strong gains this morning. FB delivered a strong eps beat last night, creating bullish momentum in the tech sector. The Bank of Japan reinforces it's low rate policy and this morning GDP release are key factors for the market today. DJ Industrials are all green in the pre market with the exception of AMGN as the IRS is seeking $7.1B in back taxes related to its operations in Puerto Rico.